Grr IPS retrun Calc Before Tax
I have been operating on the formula for IPS retrun Calc of
Lets say real return needed is 5% there is a tax rate of .20 and inflation is three percent
I have been
.05/(1-.2) + .03 = .0925
I just saw in my notes (which i think is wrong)
(.05+.03)/.80 =.10....
Which is the right way? The first? |